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Ratio of logistic cost to GDP to be pressed down to 1%-2% in 2014.

Lukita Dinarsyah Tuwo, a deputy of the minister for national development planning, said the government is studying four targets in the implementation of national logistic system. The four targets include, first a cut in the ratio of logistic cost to the Gross Domestic Product (GDP) to 1-2 percentage point from the ratio in 2010, second, improvement in the distribution of goods by building 26 units of pilot market; third, increase in thye volume of containers through dryport by 20%, and fourth, cut in ship dwelling time at Tanjung Priok port to 3-4 days. According to Lukita, the four targets are proposed by Amalia Adininggar Widyasanti, the trade, investment and international economic cooperation director at the National Development Planning Board (Bappenas). He said in 2010, the ratio of logistic cost to GDP in 2010 was 23.99%. The ratio included transport cost 11.83%, cost of stockpiling 8%, and administration cost 4.16%. Ship dwelling time at Tanjung Priok is 3-4 days. In the first phase, the cut in logistic cost ratio is focused in Tanjung Priok, the country's largest and busiest seaport. General chairman of the Indonesian National Shipowners Association (INSA) Carmelita Hartato said the government's plan to cut the ratio by 1-2 percentage point in 2014 is not significant. He said if the national logistic system is implemented consistently, the ration could be reduced to less than 20%. Carmelita suggested the op0ening of distribution centers in each province to better smoothen the distribution of essential and strategi goods. Two regional distribution centers should be enough to cover westrern and easter parts of Indonesia. Carmelita said the the government has not seriously adderess the problem in the national logistic system.
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Publication:Indonesian Commercial Newsletter
Date:Apr 1, 2013
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